In a major crackdown on unregistered financial advisory services, the Securities and Exchange Board of India (Sebi) has barred prominent financial influencer Avadhut Sathe and his company from the securities market. The regulator has ordered the impounding of alleged illegal gains amounting to a staggering ₹546.16 crore for conducting unregistered investment advisory and research analyst operations disguised as stock market education.
The Operation and The Allegations
Sebi's interim order, passed by whole-time member Kamlesh Chandra Varshney on Thursday, states that Avadhut Sathe and his entity, Avadhut Sathe Trading Academy Pvt Ltd, collected a total of ₹601.37 crore from more than 337,000 investors since its inception in 2015. The regulator found concrete evidence of wrongdoing in eight specific courses offered to the public between January 2020 and October 2025, involving collections of ₹546.16 crore.
The core allegation is that Sathe and his academy, along with proprietor Gouri Avadhut Sathe, were operating unregistered advisory services instead of a genuine educational platform. Sebi mandates registration for investment advisers and research analysts to protect investors, a requirement the noticees allegedly bypassed.
How the 'Education' Masked Real-Time Advisory
Sebi's investigation, which included search operations at the academy's and Sathe's premises on August 20-21, uncovered a detailed system of guidance. Analysis of seized WhatsApp chats and video recordings revealed that participants received direct, stock-specific advice.
In live trading rooms, Sathe was heard giving real-time buy and sell cues, discussing resistance levels, stop-loss points, and intraday movements. He used live charts to discuss his own trades and made predictions. Crucially, he advised participants to move funds from their capital or even fixed deposits into specific securities, promising returns "better than" bank deposits. Participants were heard confirming they had taken positions based on these prompts.
Sebi concluded that this "handholding" during market hours constituted investment advisory in substance, not mere financial education. The regulator noted that despite prior warnings, the noticees used their significant social media reach to publish misleading information and claim unrealistic returns, luring more investors into paid programs.
Immediate Actions and Future Consequences
The order takes immediate effect. Sebi has restrained Sathe and the academy from buying, selling, or dealing in securities until further notice. Banks and depositories have been directed to freeze their accounts. They have also been ordered to open fixed deposits equivalent to the ₹546.16 crore, with a lien marked in favour of Sebi.
The regulator held Sathe as playing the primary role in inducing trades and thus held him and the academy jointly liable for the impounded amount. The remaining ₹55.21 crore of the total ₹601.37 crore collected since 2015 may also be considered for disgorgement pending explanations from the noticees.
This interim order also serves as a show-cause notice. Sathe and his academy have 21 days to respond as to why they should not be directed to disgorge the entire ₹601.37 crore with interest, face a longer market ban, pay penalties for unregistered advisory and PFUTP violations, and refund money to all affected participants. The case highlights Sebi's increasing scrutiny of finfluencers and unregistered advisory activities in the digital age.
